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Bank of America needs more than $80 billion in capital: FBR
MarketWatch ^
| 2009-01-20
Posted on 01/20/2009 9:29:56 PM PST by rabscuttle385
Wells Fargo also will likely cut dividend to boost capital, analyst says
BY ALISTAIR BARR
SAN FRANCISCO (MarketWatch) Bank of America Corp. needs more than $80 billion in new common equity capital to support the huge amount of assets on its balance sheet, an analyst said Tuesday.
Friedman, Billings, Ramsey's Paul Miller also said Wells Fargo & Co. (NYSE:WFC) probably will have to cut its dividend soon as that bank tries to boost capital. Shares of Bank of America slumped 29% to close at $5.10 on Tuesday. That's the lowest level since late 1990. Wells Fargo lost 24% to close at $114.23, the lowest level in roughly a decade.
Bank of America (NYSE:BAC) reported a $1.79 billion fourth-quarter loss on Friday, and said its newly acquired brokerage unit, Merrill Lynch, lost more than $15 billion in the same period.
Charlotte, N.C.-based Bank of America enters 2009 with $61.7 billion of tangible common equity, supporting $2.4 trillion of tangible assets, Miller wrote in a note.
The bank probably needs to maintain a tangible equity ratio of 6% to 9%, he said. "It would take over $80 billion of new common equity to reach even the low end of the range, and we believe Bank of America simply is not generating sufficient capital internally in this environment to put a dent in this size capital hole."
(Excerpt) Read more at marketwatch.com ...
TOPICS: Business/Economy; Front Page News; News/Current Events; US: North Carolina
KEYWORDS: bac; banking; bankofamerica; boa; bofa; failure; financialcrisis; panicof2009; wellsfargobank; wfc
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To: PAR35; TigerLikesRooster; bamahead; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; ...
*Ping!*
2
posted on
01/20/2009 9:30:43 PM PST
by
rabscuttle385
("If this be treason, then make the most of it!" —Patrick Henry)
|
The Money, Banking, and Financial Markets Ping List. "Money, not morality, is the principle commerce of civilized nations." Thomas Jefferson FR Keywords: moneylist, bankinglist, financelist Please tag all relevant threads with the aforementioned keywords. This can be a very high-volume ping list at times. Ping list jointly pinged by rabscuttle385 and TigerLikesRooster. To join the ping list: FReepmail rabscuttle385 with the subject line add moneylist. (Stop getting pings by sending the subject line drop moneylist.) |
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3
posted on
01/20/2009 9:31:17 PM PST
by
rabscuttle385
("If this be treason, then make the most of it!" —Patrick Henry)
To: rabscuttle385
Hopefully el Banco Del Messico will croak for good. Jerks.
4
posted on
01/20/2009 9:32:21 PM PST
by
pnh102
(Save America - Ban Ethanol Now!)
To: rabscuttle385
Oh, no! Who would have ever guessed that B of A might need more taxpayer money(oooppps, I forgot, we are only borrowing the money from the Chinese)to clean up the ML cram-down.
Them boys been had!
5
posted on
01/20/2009 9:33:31 PM PST
by
April Lexington
(Study the constitution so you know what they are taking away!)
To: rabscuttle385
The bank probably needs to maintain a tangible equity ratio of 6% to 9%, he said. "It would take over $80 billion of new common equity to reach even the low end of the range, and we believe Bank of America simply is not generating sufficient capital internally in this environment to put a dent in this size capital hole." Them fellas is BROKE!
6
posted on
01/20/2009 9:35:06 PM PST
by
April Lexington
(Study the constitution so you know what they are taking away!)
To: rabscuttle385
A few million would set my family right!
7
posted on
01/20/2009 9:35:19 PM PST
by
KoRn
To: rabscuttle385
Please let them fold. Please. The US Taxpayer cannot afford to bail out this king of bad business. Period. It is a bottomless hole that will fill in quicker if they are allowed to die.
8
posted on
01/20/2009 9:35:28 PM PST
by
TheBattman
(Pray for our country....)
To: rabscuttle385
Bankrupting America. How many trillions in ‘bailouts’ this year?
9
posted on
01/20/2009 9:36:01 PM PST
by
GeronL
(DAY 1, YEAR 0 - "and when white will embrace what is right". Hate speech on parade in a benediction)
To: rabscuttle385
TARP 3X3 coming right up (you known what)
I guess a 3X3 is less painful that a 4X4
10
posted on
01/20/2009 9:42:40 PM PST
by
spokeshave
(Soft Power...bringing shaved ice to a gunfight)
To: rabscuttle385
BofA used to be based in San Francisco, I believe.
So, does this effect FDIC insured money market account?
11
posted on
01/20/2009 9:44:44 PM PST
by
steelyourfaith
(It's high time for the B.O. Impeachment proceedings to begin.)
Comment #12 Removed by Moderator
To: steelyourfaith
So, does this effect FDIC insured money market account?If it's an FDIC-insured Money Market Savings Account (not a Money Market Fund), then you *should* be fine, assuming that the FDIC doesn't go under.
The old Bank of America was based out of Los Angeles, until bought by A.P. Giannini's Bank of Italy out of Frisco. Of course, the whole outfit was later taken over by NationsBank out of Charlotte.
13
posted on
01/20/2009 9:47:46 PM PST
by
rabscuttle385
("If this be treason, then make the most of it!" —Patrick Henry)
To: steelyourfaith
If more large banks fail the FDIC will be out of funds to replenish accounts and it will be wait-in-line time. The dollars you finally get might not be worth much after running printing presses 24 hrs/day for months.
14
posted on
01/20/2009 9:49:27 PM PST
by
steve86
(Acerbic by nature, not nurture)
To: rabscuttle385
my Mom has money in Bank of America as well as Well’s Fargo, is Bank of America on the verge of tanking?
To: rabscuttle385
My Mom and Dad used to bank at Giannini’s in FResno. I still have a few statements and canceled checks from around Oct 1929. It was around this time AP took over BofA as I have a couple of statements and checks on that bank. Shortly after that they lost the farm and had to move...
16
posted on
01/20/2009 9:55:23 PM PST
by
tubebender
( If swimming is good for your figure, explain whales to me.)
To: rabscuttle385
It’s like throwing money into a black hole. It just gets sucked up and disappears.
WHY did Bank of America think that it could buy the toxic waste of Countrywide Financial and the failing Merrill Lynch and make it all work out? And now they expect the taxpayers to set things right???
The government should just say, “NO!!!”
17
posted on
01/20/2009 9:55:55 PM PST
by
Deo volente
(High Noon, January 20, 2009: Our long national nightmare begins.)
To: Baynative
Now the Bank that openly advertised they would give credit cards to illegals with no proof of citizenship needed wants our tax money to bail them out. Where do we go to yell "HELL NO!" This was my though precisely.
They chose to give $$ to illegal aliens with no ssan...
I choose to let them fry.
.
18
posted on
01/20/2009 10:02:43 PM PST
by
Seaplaner
(Never give in. Never give in. Never...except to convictions of honour and good sense. W. Churchill)
To: GeronL
19
posted on
01/20/2009 10:03:05 PM PST
by
Deo volente
(High Noon, January 20, 2009: Our long national nightmare begins.)
To: Sarah Barracuda
Well, if everyone tries to withdraw at once? Yes. Like any other bank.
20
posted on
01/20/2009 10:06:25 PM PST
by
Chet 99
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